Although,wire rod market in Raipur and Durgapur has slumped down, the conversion gap has improved. Strong pressure on manufacturers to maintain prices is worsening the demand and supply equation.
The wire market has been dull showing no signs of change in buying sentiments since many days. The wire rod market has slumped down by INR 200-600/MT, yet the conversion gap has improved by INR 150-250/MT for the month of May in both Raipur and Durgapur. It was also reported that Durgapur market witnessed shortage of material for some days, but now some rebar manufacturing units in Durgapur have started manufacturing wire rods because of better conversion from billet to wire rod as compared to rebar.
In April, prices in Raipur were opened as per the demand and supply in the market, whereas in May, few large manufacturer started opening prices together. Currently, in Raipur 12G GI wire and 12G barbed wire are being offered at around INR 35,500/MT and INR 37,200/MT respectively (basic prices, E.D and CST/VAT extra).The lowest conversion gap in Raipur was marked at INR 3,400/MT in the month of April’15 and in Durgapur it was observed at INR 2,810/MT in the month of Jan’15.
Monthly Average Conversion Spread from Billet to 5.5 mm Wire Rod
Wire Rod Imports
Sources revealed that imported wire rod offers of 6.5MM were offered at around USD 395-400/MT CFR Mumbai, for 1st week of June’15 shipment, origin China. Wire Rod 5.5 mm is assessed at around USD 410/MT, high by USD 10/MT from 6.5 mm. Import Duty 5% & CVD 12.5% and SAD extra. The offers are almost same as the previous offers for May shipments. It was learned that the quantity of the imported material coming in has declined due to overall weak demand in the Indian finished steel market.
Quantity of Wire Import – Alloy and Non Alloy (QTY in MT)
| Monthly | (Ch-7227) Alloy | (CH-7217) Non-Alloy | Total | Inc/Dec |
| Jan’15 | 82,145 | 9,383 | 86,128 | |
| Feb’15 | 85,903 | 11,301 | 97,204 | +12.8% |
| Mar’15 | 57,487 | 10,703 | 68,190 | -42.5% |
| April’15 | 32,525 | 10,769 | 43,301 | -57.4% |
| May’15 (upto 16 May) | 23,345 | 2,505 | 25,850 |
Source: SteelMint Research
Primary Market
Sources revealed, SAIL (IISCO steel plant, Durgapur) is offering 8 mm wire rod at around INR 35,800-36,000/MT and JSW in Mumbai is offering 5.5 mm wire rod at INR 34,000-35,000/MT (prices including ED, VAT Extra). However, company officials didn’t confirm the prices.
Indian Billet and Wire Prices
| City | MS Billet | W-o-W Change | 5.5 mm Wire Rod | W-o-W Change | 12G HB Wire | W-o-W Change | 20G Binding Wire | W-o-W Change |
| Raipur | 25,150 | -400 | 28,900 | -200 | 30,700 | -200 | 35,800 | 0 |
| Durgapur | 25,150 | -750 | 29,500 | -600 | 31,800 | -600 | 38,300 | -200 |
Basic Prices in INR/MT as on 25 May ’15. ED and VAT/CST extra
Source: SteelMint Research
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